All Encompassing Mortgage and Real Estate Thread

[UT_OB1 2,225]

On 6/25/2021 at 12:22 PM, UT_OB1 said:

Unless I’m reading something wrong, I think futures just dropped 100. I’m seeing numbers in the 700s. Free fall?!  Please?

I case anyone else needs to buy $30k worth of lumber that they were only expecting to be about $10-15k, lumber down to $600

[Pato del Muerto 52,608]

I’m sharing this because it’s so alarming. 
maybe the ugliest house I’ve ever seen, on a tiny 5700 sqft lot, and it’s a new build still under construction not to be completed until January!  
 

https://www.zillow.com/homedetails/622-Long-Run-Liberty-Hill-TX-78642/2069574839_zpid/?z7&utm

 

eta the neighborhood plat is just sad. 

Edited July 15, 2021 by Pato del Muerto

[HRSchenker 2,274]

1 hour ago, Pato del Muerto said:

I’m sharing this because it’s so alarming. 
maybe the ugliest house I’ve ever seen, on a tiny 5700 sqft lot, and it’s a new build still under construction not to be completed until January!  
 

https://www.zillow.com/homedetails/622-Long-Run-Liberty-Hill-TX-78642/2069574839_zpid/?z7&utm

 

eta the neighborhood plat is just sad. 

"Apartments are gross! It's boxed living in a generic looking structure!.....this house is beautiful!" 

Gross listing 

[Hefeweizen 5,333]

1 hour ago, Pato del Muerto said:

I’m sharing this because it’s so alarming. 
maybe the ugliest house I’ve ever seen, on a tiny 5700 sqft lot, and it’s a new build still under construction not to be completed until January!  
 

https://www.zillow.com/homedetails/622-Long-Run-Liberty-Hill-TX-78642/2069574839_zpid/?z7&utm

 

eta the neighborhood plat is just sad. 

Why is it sad?  It’s typical production builder layout. 
 

The alley loading is especially dumb though.

[Pato del Muerto 52,608]

1 minute ago, Hefeweizen said:

Why is it sad?  It’s typical production builder layout. 
 

The alley loading is especially dumb though.

The cube shape with no elevation or pitch changes is to maximize useable space. Used to be to fit your 2500 sqft tract homes into a 7000 ft lot. Now it’s scaling down and being used to fit a 1500 sq ft home onto a 5600 sq ft lot, and the entire neighborhood is lotted that way. 
 

zero character home in a zero character neighborhood…for 350k out in liberty hill. It’s every compromise in one listing. 

[Guest Lobo]

I bet dollars to donuts that "thing" sells for $400k because it's "just minutes from downtown Austin"

[HRSchenker 2,274]

I like that phrasing. "Zero character house in a zero character neighborhood". Suburbs in a nutshell 

[Okie State 3,848]

I like that phrasing. "Zero character house in a zero character neighborhood". Suburbs in a nutshell 

Agreed for the most part. There are some good ones, but hard to find. So many are just depressing to drive through, let alone live in.

[TKthunder2 4,997]

On 5/29/2021 at 1:34 PM, TKthunder2 said:

Drove by and saw this in our neighborhood.  It’s like $100/sqft more than the highest selling house in this area.  The lot is a little bigger than most but they are clearly trying to hide the square footage in all the promotional materials.

https://www.redfin.com/TX/Austin/10224-Spicewood-Mesa-78759/home/31323779

 

On 6/18/2021 at 10:12 PM, TKthunder2 said:

UPDATE: $100k price cut, now under contract I assume for less than list or someone is an idiot.

Sold for $1.35 million.  My taxes are fucked.

[Pato del Muerto 52,608]

1 hour ago, Okie State said:

1 hour ago, HRSchenker said:

I like that phrasing. "Zero character house in a zero character neighborhood". Suburbs in a nutshell 

Agreed for the most part. There are some good ones, but hard to find. So many are just depressing to drive through, let alone live in.

For comparison sake, I just bought in Georgetown. Older neighborhood with huge mature live oaks and other trees all over. Larger lots (mine is .42 acre) and no HOA (so I get to park my travel trailer on site, and there are many boats and rvs on property in this neighborhood) which, among other things, lends to individuality with homes and properties. 
 

I also happened to be able to buy this off market and got it for 45k under appraised value, and the appraiser said it would probably go well above that I’d put on the market right now.  So that was a fortunate circumstance. 

[blacklab 11,952]

[Pato del Muerto 52,608]

Just now, blacklab said:

Your house is worth 3 times mine I bet. You’ve owned websites with a higher valuation, per court records. 

[Gatorubet 30,316]

Your house is worth 3 times mine I bet. You’ve owned websites with a higher valuation, per court records. 

Your house is worth $116,666?

[Dbeasy 15,093]

12 hours ago, Pato del Muerto said:

For comparison sake, I just bought in Georgetown. Older neighborhood with huge mature live oaks and other trees all over. Larger lots (mine is .42 acre) and no HOA (so I get to park my travel trailer on site, and there are many boats and rvs on property in this neighborhood) which, among other things, lends to individuality with homes and properties. 
 

I also happened to be able to buy this off market and got it for 45k under appraised value, and the appraiser said it would probably go well above that I’d put on the market right now.  So that was a fortunate circumstance. 

How did you find it off market?

[Pato del Muerto 52,608]

6 hours ago, Dbeasy said:

How did you find it off market?

Family member was renting it, owner offered to sell it to her, she declined. I was all- how much does he want for it?  And it went from there. 

[South Austin 52,617]

1 hour ago, Pato del Muerto said:

Family member was renting it, owner offered to sell it to her, she declined. I was all- how much does he want for it?  And it went from there. 

Sorta similar story about how I unloaded my first house in the Kinney Avenue area.  We bought it in 2003 for $200,000 and it was barely over 900 square feet on a typical tiny South Austin lot, but in an awesome part of town, and it was just me and the then-wife.  We moved in 2006 when we were pregnant with our first and needed a bigger place in an area with better schools.  We rented it and had great luck with tenants, never making a ton of cash, but always covering the mortgage give or take a few hundred dollars, and very little maintenance. 

Move ahead to 2014, and a tenant had just moved out.  A builder who was in the middle of a tear down on the lot next door contacted us to ask if he could get some equipment on our property to trim some trees on his lot.  When he finds out we're in between tenants, he starts kicking the tires and asks if we're interested in selling.  I tell him we hadn't thought about it and planned on continuing to hold on to it as a rental, but would field any offer.  He came back a couple days later and offered $360,000.  I do a little research on what was selling in the area, and countered with $395,000, which I thought was on the higher side, and probably would've sold for lower.  He paused for a couple seconds, and said, "Okay."  I hung up the phone and kicked myself for not going with a higher number, because I'm pretty sure he would've taken it. 

That was in 2014, and I thought it was silly money back then.  I couldn't have imagined today's market.

[CooterBrown 18,031]

27 minutes ago, South Austin said:

Sorta similar story about how I unloaded my first house in the Kinney Avenue area.  We bought it in 2003 for $200,000 and it was barely over 900 square feet on a typical tiny South Austin lot, but in an awesome part of town, and it was just me and the then-wife.  We moved in 2006 when we were pregnant with our first and needed a bigger place in an area with better schools.  We rented it and had great luck with tenants, never making a ton of cash, but always covering the mortgage give or take a few hundred dollars, and very little maintenance. 

Move ahead to 2014, and a tenant had just moved out.  A builder who was in the middle of a tear down on the lot next door contacted us to ask if he could get some equipment on our property to trim some trees on his lot.  When he finds out we're in between tenants, he starts kicking the tires and asks if we're interested in selling.  I tell him we hadn't thought about it and planned on continuing to hold on to it as a rental, but would field any offer.  He came back a couple days later and offered $360,000.  I do a little research on what was selling in the area, and countered with $395,000, which I thought was on the higher side, and probably would've sold for lower.  He paused for a couple seconds, and said, "Okay."  I hung up the phone and kicked myself for not going with a higher number, because I'm pretty sure he would've taken it. 

That was in 2014, and I thought it was silly money back then.  I couldn't have imagined today's market.

I passed on a house with a lot that was about about 220' deep on Milam just east of Travis Heights Blvd...because it was $300K.  Too much remodeling needed for that price in '00. Ugh.

 

 

[jimmyjazz 46,150]

1 hour ago, South Austin said:

That was in 2014, and I thought it was silly money back then.  I couldn't have imagined today's market.

Using TCAD, there is a house on Kinney appraised at $653K (845 sf, 0.16 acres).  I wouldn't be shocked if it pulled 30% higher, in the $850K range.  That would $1K/sf.  When I lived in Travis Heights (sold in 2005), $250/sf was considered insanity.

[South Austin 52,617]

2 minutes ago, jimmyjazz said:

When I lived in Travis Heights (sold in 2005), $250/sf was considered insanity.

In 2006 when we had considered finding a bigger house in the area, a lot of homes on the market were approaching the $350/sq. foot range, and that wasn't even new build.  So we opted for a bigger house, bigger lot, and better schools for a lot less money in NW Hills.  I miss that South Austin neighborhood sometimes, but the prices had gotten crazy even back then.

[gmr548 16,617]

350k and accompanying property tax bill to live in liberty hill lol

[UTPhil2006 3,815]

FHFA Adverse Market fee officially dead now

Quote

Quote

The Federal Housing Finance Agency (FHFA) is officially axing Freddie Mac and Fannie Mae’s controversial adverse market refinance fee.

Starting in August, lenders will no longer be required to pay the government sponsored enterprises (GSEs) a fee of 50 basis points when they deliver refinanced mortgages. 

FHFA Acting Director Sandra Thompson said the elimination of the fee will help families take advantage of the current low rate environment.

 

 

[Gladeite 375]

The old days.  My wife and I lived in a new from the studs remodel in Travis Heights for $90/ft in the late 80's.   New kitchen, new bathrooms, and plans for a 2nd story addition and 2 car garage.  We thought we would be wasting money adding on.  In those days, cars on blocks were common and none of our neighbors spoke English.  

[CHIEF 5,095]

I love good hindsight is 20/20 stories. Talked Mrs. CHIEF into going and looking at a 1930's 1100 sqft. bungalow for $70k in Travis Heights, right after we got married. It had beautiful hardwood floors, but needed about $50k in renovations. Her excuse, "I don't want to live in an old, tiny, crappy house." That fucker would easily be worth 10 times that today. Could have probably even tripled our money back in 2005, when we moved away.

CHIEF

[hornian 5,223]

Austin (at least certain parts) and price per square foot doesn't make sense to me anymore. It's all about the dirt, not the improvements, for many parts of town.

I had a divorce case a few years back, before the real estate prices went truly bonkers, and were only plain ridiculous. My client (Husband) bought a >1,000 sq/ft POS in 78704 in late 90s for ball park of $100K, got married in early 2000s, added on and remodeled the house to be about 1500 sq/ft with construction costs of about $100K after they got pregnant, and sold around 2010 for about $500K, and used the proceeds to buy their next house. Wife wanted all the appreciation from the sale to be community property, but we were able to successfully argue that all the value was the land (which was his separate property), not the improvements (which were community property), and Judge agreed. We had to have experts and put on a lot of evidence, but it was for sure the right call - in fact, I'm pretty sure that even with the recent improvements the new owner scraped the lot and rebuilt something else, so the value was almost certainly all in the land. 

[DonkeyCigars 143]

1 hour ago, hornian said:

Austin (at least certain parts) and price per square foot doesn't make sense to me anymore. It's all about the dirt, not the improvements, for many parts of town.

I had a divorce case a few years back, before the real estate prices went truly bonkers, and were only plain ridiculous. My client (Husband) bought a >1,000 sq/ft POS in 78704 in late 90s for ball park of $100K, got married in early 2000s, added on and remodeled the house to be about 1500 sq/ft with construction costs of about $100K after they got pregnant, and sold around 2010 for about $500K, and used the proceeds to buy their next house. Wife wanted all the appreciation from the sale to be community property, but we were able to successfully argue that all the value was the land (which was his separate property), not the improvements (which were community property), and Judge agreed. We had to have experts and put on a lot of evidence, but it was for sure the right call - in fact, I'm pretty sure that even with the recent improvements the new owner scraped the lot and rebuilt something else, so the value was almost certainly all in the land. 

Yea; which is why after this thread the second most active real estate thread is “which town is the next Austin”.

For better or worse, lots of folks here got lucky that Austin has exploded the way it has and have benefited and been made millionaires out of sheer luck. Sure there may be some of us who can say we are passionate and well read about real estate trends and development but foe the most part we had day jobs and built or bought a house and improved upon it and maintained it for ourselves and family same as we would have if we lived anywhere.

I guess it brings me to the axiom of life: It’s always better to be lucky than good.

[Neonmoon 38,130]

I remember the good old days when the Oltorf HEB was sketchy as fuck

[closetohumping 17,474]

On 7/16/2021 at 12:07 PM, CHIEF said:

I love good hindsight is 20/20 stories. Talked Mrs. CHIEF into going and looking at a 1930's 1100 sqft. bungalow for $70k in Travis Heights, right after we got married. It had beautiful hardwood floors, but needed about $50k in renovations. Her excuse, "I don't want to live in an old, tiny, crappy house." That fucker would easily be worth 10 times that today. Could have probably even tripled our money back in 2005, when we moved away.

CHIEF

Back in the day, I was poor enough to qualify to buy in Mueller, I passed.

[Armybrat 40,915]

6 hours ago, Neonmoon said:

I remember the good old days when the Oltorf HEB was sketchy as fuck

I remember the days when the only things at that intersection were the new Twin Oaks shopping center and Gene Riney’s gas station.

[CHIEF 5,095]

My MIL, in an assisted living facility with rapidly developing Alzheimer's, just let us know that my BIL bought a 3/2 house in Wimberly on 2.5 acres for $500. So apparently there are some killer deals still out there. Be on the lookout and don't give up hope on getting a great deal on your dream home.

She had also lost her phone, even though she was talking on it.

CHIEF

[jimmyjazz 46,150]

WTF?  I put in a cash offer for $600 on that property.  Your BIL nabbed it for $500?

Always the bridesmaid, never the bride.

[hornian 5,223]

4 hours ago, closetohumping said:

Back in the day, I was poor enough to qualify to buy in Mueller, I passed.

I had a client who bought in Mueller under the low income program, and her equity was limited when she sold it. Most of the appreciation went to the builder. That’s not to say that she lost money- she didn’t. But it wasn’t a windfall or even a really great investment. It would have been a better ROI to have bought over in Windsor Park using a FHA loan over the low income program she used to buy a new house in Mueller (of course the houses in WP were not as new and shiny as the one she lived in for 10 years in Mueller, and her daughter would have gone to Reagan instead of McCallum, so there were other benefits). 

[Gil Bang 26,027]

SANTA ANA — A La Habra woman pleaded guilty Friday and was immediately sentenced to a year in jail for stealing about $570,000 from prospective home buyers.

Laura Christina Preciado, 50, pleaded guilty to seven counts of grand theft, with sentencing enhancement allegations of aggravated white collar crime in excess of $100,000, according to court records that list her occupation as a real estate agent.

Preciado was given credit for 22 days in custody.

Orange County Superior Court Judge Richard King placed her on 10 years of formal probation and ordered her to pay $570,640 in restitution plus 10% interest, according to court records.

Preciado listed real estate properties that were going through foreclosure without the consent of owners, often for amounts well below market value, Orange County District Attorney’s investigators said in a court filing that sought to increase her bail.

She pocketed the earnest money that prospective buyers posted and instructed them to not contact the residents.

The crimes occurred between September 2017 through April 2019.

State records show properties involved were in Orange, Los Angeles, San Bernardino and Riverside counties.

The state Department of Real Estate said in February 2020 it revoked Preciado’s real estate broker license and mortgage loan originator license endorsements “for defrauding prospective buyers of real estate.” Preciado had been licensed to do business as AE Management and AE Mortgage and had an office in Fullerton.

[closetohumping 17,474]

4 hours ago, hornian said:

I had a client who bought in Mueller under the low income program, and her equity was limited when she sold it. Most of the appreciation went to the builder. That’s not to say that she lost money- she didn’t. But it wasn’t a windfall or even a really great investment. It would have been a better ROI to have bought over in Windsor Park using a FHA loan over the low income program she used to buy a new house in Mueller (of course the houses in WP were not as new and shiny as the one she lived in for 10 years in Mueller, and her daughter would have gone to Reagan instead of McCallum, so there were other benefits). 

Thanks for making me feel better.  I assumed there would be a resale cap.  

 

On another note, I've gotten some quotes from a few mortgage folks, including one that was recommended here (she's been great), and man, there are some slimy mouth breather types.  Kind of surprised, not really? 

[LebongJames 1,814]

11 hours ago, closetohumping said:

Thanks for making me feel better.  I assumed there would be a resale cap.  

 

On another note, I've gotten some quotes from a few mortgage folks, including one that was recommended here (she's been great), and man, there are some slimy mouth breather types.  Kind of surprised, not really? 

You only get 2% of the appreciation per year lived in the property. The rest goes back to the citys affordable program. Also your are not supposed to rent them.

Edited July 19, 2021 by LebongJames

[ballrific 215]

On 7/17/2021 at 9:32 AM, hornian said:

Austin (at least certain parts) and price per square foot doesn't make sense to me anymore. It's all about the dirt, not the improvements, for many parts of town.

I had a divorce case a few years back, before the real estate prices went truly bonkers, and were only plain ridiculous. My client (Husband) bought a >1,000 sq/ft POS in 78704 in late 90s for ball park of $100K, got married in early 2000s, added on and remodeled the house to be about 1500 sq/ft with construction costs of about $100K after they got pregnant, and sold around 2010 for about $500K, and used the proceeds to buy their next house. Wife wanted all the appreciation from the sale to be community property, but we were able to successfully argue that all the value was the land (which was his separate property), not the improvements (which were community property), and Judge agreed. We had to have experts and put on a lot of evidence, but it was for sure the right call - in fact, I'm pretty sure that even with the recent improvements the new owner scraped the lot and rebuilt something else, so the value was almost certainly all in the land. 

thought even though you bought a property before marriage (fully paid off), once you get married and then try to sell, the full amount/proceeds are community...at least I know alot of people who think that, including myself...ha.  As old wise man use to say, if you own real estate before getting married, pay off the note and hold onto it...

[hornian 5,223]

20 minutes ago, ballrific said:

thought even though you bought a property before marriage (fully paid off), once you get married and then try to sell, the full amount/proceeds are community...at least I know alot of people who think that, including myself...ha.  As old wise man use to say, if you own real estate before getting married, pay off the note and hold onto it...

Not in Texas, we go by "inception of title" for determining character of property as separate or community - meaning if you bought something before marriage, the character of separate property doesn't change. 

There's a lot of ways to fuck that up, don't get me wrong. For example, if you sell your separate property and use the proceeds to buy new house and put your spouse on the deed, then there is a presumption that you gifted the spouse 1/2 of your separate property interest by putting her on the deed of the new house. And you can be on the hook to the community for reimbursement for improvements, or for paying down the principal of the mortgage, or things like that. 

But if you do it right, or hire an attorney who does it right, your separate property will stay your separate property. 

[UTPhil2006 3,815]

14 hours ago, closetohumping said:

Thanks for making me feel better.  I assumed there would be a resale cap.  

 

On another note, I've gotten some quotes from a few mortgage folks, including one that was recommended here (she's been great), and man, there are some slimy mouth breather types.  Kind of surprised, not really? 

Damn. At least this mouth breather buys y’all drinks after 

[dingleberryswitzer 2,724]

21 hours ago, jimmyjazz said:

WTF?  I put in a cash offer for $600 on that property.  Your BIL nabbed it for $500?

Always the bridesmaid, never the bride.

Did you write a heart felt letter?

[closetohumping 17,474]

A couple of officers I've been working with.

 

Officer "Rates are rising, did you want to lock it in?"

Me"I don't know, let me think about it." 

Me, two days later.  "Hey, found a better rate, thanks for your time."

Officer "wait, maybe we can actually do it at _%.  Things change."

 

I just don't understand the volatility.  And that doesn't include the 5 or 6 others that I have hung up on in the last month.  

 

 

[Wulaw Horn 19,152]

1 hour ago, closetohumping said:

A couple of officers I've been working with.

 

Officer "Rates are rising, did you want to lock it in?"

Me"I don't know, let me think about it." 

Me, two days later.  "Hey, found a better rate, thanks for your time."

Officer "wait, maybe we can actually do it at _%.  Things change."

 

I just don't understand the volatility.  And that doesn't include the 5 or 6 others that I have hung up on in the last month.  

 

 

So, one thing to bear in mind recently is the Fannie adverse market fee on a refinance going away. That means that you get 50 basis points to work with which would typically translate to 1/8 of a point or $3500 or $4,000 in closing cost rebate/contribution.  The other thing to keep in mind is that the market changes daily, hourly and by the minute.  We had a really good run last week, today I got a "looks like rates are rising email from 3 different lenders, so..."

[closetohumping 17,474]

31 minutes ago, Wulaw Horn said:

So, one thing to bear in mind recently is the Fannie adverse market fee on a refinance going away. That means that you get 50 basis points to work with which would typically translate to 1/8 of a point or $3500 or $4,000 in closing cost rebate/contribution.  The other thing to keep in mind is that the market changes daily, hourly and by the minute.  We had a really good run last week, today I got a "looks like rates are rising email from 3 different lenders, so..."

For sure.  It’s true volatility.   It’s just I’m getting”looks like I got your desired rate” and “I’ll match that rate “ answers.  So it’s whatever I just want the best deal.   But also understand often the best rate ain’t the best deal. 
 

 

had one say “hey got a much better rate for you “.  When he sent the estimate there was a 20k buy down. 😂

Edited July 20, 2021 by closetohumping

[Wulaw Horn 19,152]

13 minutes ago, closetohumping said:

For sure.  It’s true volatility.   It’s just I’m getting”looks like I got your desired rate” and “I’ll match that rate “ answers.  So it’s whatever I just want the best deal.   But also understand often the best rate ain’t the best deal. 
 

 

had one say “hey got a much better rate for you “.  When he sent the estimate there was a 20k buy down. 😂

That's awesome.

[Wulaw Horn 19,152]

Hey Mr. Prospect, how would you like a 1.5% loan instead of a 2.75% loan on a 30 year.  It will only cost $50k in up front fees! I'm sure you will make that back in 4 or 5 years

[closetohumping 17,474]

7 minutes ago, Wulaw Horn said:

Hey Mr. Prospect, how would you like a 1.5% loan instead of a 2.75% loan on a 30 year.  It will only cost $50k in up front fees! I'm sure you will make that back in 4 or 5 years

Don't forget to throw in a "God bless" in your text as well.

[UTPhil2006 3,815]

37 minutes ago, Wulaw Horn said:

Hey Mr. Prospect, how would you like a 1.5% loan instead of a 2.75% loan on a 30 year.  It will only cost $50k in up front fees! I'm sure you will make that back in 4 or 5 years

You'd be surprised how many LO's do that just to get the lower rate in front of people, and then don't explain the origination costs

[Wulaw Horn 19,152]

Just now, UTPhil2006 said:

You'd be surprised how many LO's do that just to get the lower rate in front of people, and then don't explain the origination costs

Oh I’m not surprised. It’s quickens entire business model. 

[Neonmoon 38,130]

1 hour ago, UTPhil2006 said:

You'd be surprised how many LO's do that just to get the lower rate in front of people, and then don't explain the origination costs

It helps if you don't use the C word. 

[Pato del Muerto 52,608]

1 hour ago, UTPhil2006 said:

You'd be surprised how many LO's do that just to get the lower rate in front of people, and then don't explain the origination costs

Well there’s probably plenty of prospects that have no clue, and their first and only question is what’s your rate. 
 

so maybe you quote them a 7 year balloon rate because hey I can get that rate for you. 

[closetohumping 17,474]

2 hours ago, Pato del Muerto said:

Well there’s probably plenty of prospects that have no clue, and their first and only question is what’s your rate. 
 

so maybe you quote them a 7 year balloon rate because hey I can get that rate for you. 

Sure but some of us read the rest and then ask “hey what’s this fee here, seems high” and we get the “oh this isn’t my final yet, let me work my magic and I’ll get that lowered.   Ready to sign though?”   

[LCHorn 2,632]

15 hours ago, Wulaw Horn said:

Oh I’m not surprised. It’s quickens entire business model. 

I almost lost a jumbo VA loan to Quicken last week because Quicken quoted the borrower a rate .5% less than what I quoted.  
 

What they failed to explain to the borrower was that they were charging him $5k for it.